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Surprise - the USA markets gained for the first time this week. Gold and oil marginally declined. Data releases today were not good and not bad - there was little news out there to affect the mood of the markets. Interestingly, Smith & Wesson revenues hit an all time high - up 200% since Obama was elected,

Todays S&P 500 Chart

The Market in Perspective

NEW YORK/SAN FRANCISCO (Reuters) - Sumner Redstone removed five of Viacom Inc's directors, including Chief Executive Philippe Dauman, from the board of the media company he controls, ramping up the stakes in the battle over the future of his $40 billion media empire.

SAN FRANCISCO (Reuters) - Shares of firearm makers rose on Thursday ahead of Smith & Wesson Holding's quarterly report, following volatility this week after a shooting attack that killed 49 people at a gay nightclub in Orlando.

(Reuters) - Facebook Inc founder Mark Zuckerberg's philanthropy venture has made its first major investment, leading a funding round in a startup that trains and recruits software developers in Africa.

WOLFSBURG, Germany (Reuters) - Volkswagen will invest billions of euros in electric cars, ride-hailing and automated driving to become a world leader in green transport by 2025, it said on Thursday, as it reshapes its business following its diesel emissions scandal.

Moments ago, America's legendary gun company reported Q4 earnings which, not surprisingly, beat estimate on the top and bottom line, reporting EPS of $0.66, far above the $0.54 expected, on revenue of $221.1 million, $7 million higher than consensus had expected. The stock, while not at its all time high which it hit earlier this year, is surging on the results, however, it was the tremendous topline growth in revenue that has to be seen to be believed.

See if you can spot the catalyst that unleashed SWHC's unprecedented growth burst.

Yes, you are reading that chart correctly: Smith and Wessons sales are up 200% since Obama was elected.

Once again, we wonder if secretly Obama isn't merely a very deeply planted agent for the NRA and gun lobby - if it wasn't for him gun sales in the US would be order of magnitude lower.

As for the future, SWHC forecast 2017 sales of $740-$760 million, which smashed expectations of $732 million, and which we are confident will be very easily beat, especially thanks to the latest attempt by the president to implement yet another set of gun control executive orders.

And this of course: the number of FBI background checks, a direct proxy for gun sale in any given monthm which just hit an all time high for the month of May.

So to recap - Fed dismal and no change - warns of Brexit, BoJ disappoints with no change - warns of Brexit, BoE does nothing - warns of Brexit, Brexit polls show "Leave" leading... but an England win in Euro2016 and the death of a British MP was enough to turn the entire day around...

The sad truth about today's massive roller-coaster roundtrip is that it was driven by the death of a British MP which sparked speculation about delays to the Brexit vote...

Bonds were once again panic-bid with Swiss 30Y yields going negative for the first time in history...

As rate-hike odds continue to tumble (with Dec just 20% now)...

Across asset-classes, Bonds remain in the green as gold caught down to stocks...

Think back. Many readers have been trading for 10 or 20 years. A few have been trading for 30 or more years. What was it like the last time German 10-year bond yields went negative?

That is sort of a trick question. Most likely you were not alive, no matter how old you are.

As translated from Spanish, my friend Guru Huky posted the answer on his blog today: And the last time the German bond stood negative was .... surprise surprise.

German 10-Year Yield Since 1807

Huky Comments

Yesterday the yield of German bonds entered negative territory. Some will think that all is well and that falls within what could be considered normal, but that there is nothing like taking a look back.

The last time the German bond slipped into negative return was between 1922 and 1923. At that time in Germany succumbed to hyperinflation which left without any value to German bonds yields marked not simply because nobody bought them for those two years.

Mish Comments

Unless you are at least 94 years old you were not born yet. If you are 100 years old and have a memory of German bond yields at age six, I salute you.

With the fingerpointing over the culpability of the Orlando shooting a raging issue in this week's political news cycle, earlier today neocon senator John McCain said President Obama wasdirectly responsible for the terror attack in Orlando due to his failure to combat the rise of the Islamic State terror group. As AP reported, McCain, who lost to Obama in the 2008 presidential election, made the comment to reporters Thursday while Obama was in Orlando visiting with the families of those killed in Sunday's attack and some of the survivors.

Of course, McCain's agenda was simple: send more troops to Iraq. McCain's statement echoes remarks made this week by Donald Trump, who according to Politico, seemed to connect Obama to the attack in a Monday interview and on Wednesday tweeted an article claiming that Obamaactively supported the terrorist group that became the Islamic State.

After the shooting early Sunday morning, presumptive GOP presidential nominee Donald Trump said the president either didn't understand the radical Islamic terrorist threat or he "gets it better than anybody understands." "We're led by a man that either is not tough, not smart, or he's got something else in mind," Trump said earlier this week.

"And the something else in mind, you know, people can't believe it, people cannot believe that President Obama is acting the way he acts and can't even mention the words 'radical Islamic terrorism.' There's something going on " it's inconceivable. There's something going on."

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The Philly Fed Business Outlook Survey is now slightly in expansion. Key elements marginally declined and remain in contraction. The only other manufacturing survey released so far for this month is also in expansion.

Earnings of large U.S. banks would be trimmed by as much as 5.6% this year and as much as 9% in 2017 if the U.K. opts to leave the European Union in a referendum to be held next week, analysts at brokerage Keefe, Bruyette & Woods said.

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